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Q:
One of the most thorough and complex explanations of changes in the retailing industry is the wheel-of-retailing hypothesis.
Q:
An important leadership task involves articulating all of the following points except:
A) beliefs.
B) values.
C) status.
D) policies.
E) activities.
Q:
Jaguar produced so few cars that it couldn't get volume discounts from components suppliers. Jaguar managers sometimes could not even determine the "fair" price for a particular part. In terms of Porter's competitive forces framework, Jaguar's strategic disadvantage stemmed from low:
A) buyer power.
B) supplier power.
C) threat of new entrants.
D) threat of substitute products.
E) access to distribution channels.
Q:
Wholesaling includes all the activities involved in selling goods or services directly to final consumers for their personal use.
Q:
According to Carly Fiorina, former CEO of Hewlett-Packard, leadership is about:
A) hierarchy.
B) title.
C) status.
D) connecting.
E) bragging.
Q:
Which of the following is not identified by Porter as one of the possible types of barriers to entry in an industry?
A) loose bricks
B) switching costs
C) economies of scale
D) product differentiation
E) access to distribution channels
Q:
Josh purchased a new tie from an upscale men's clothing store to impress the managers he would meet at an important job interview. The day after the job interview, Josh returned the tie to the store for a full refund. This is an example of ________.
A) buyer's remorse
B) sweethearting
C) retail borrowing
D) shoplifting
E) customer profiling
Q:
Explain the reasons behind the failure of the visionary strategy of Volkswagen from becoming the number one automaker in the world.
Q:
Which of the following is not identified by Porter as one of the five forces that explains competition in an industry?
A) threat of new entrants
B) threat of substitute products or services
C) bargaining power of suppliers
D) bargaining power of competitors
E) the competitive rivalry among current members
Q:
When sales are made in a local Walmart, the sales data is sent to Walmart headquarters where the data are used to build a picture of the buying habits of people who shop at individual Walmarts across the nation. The use of ________ makes this possible.
A) POS systems
B) social shopping
C) e-commerce
D) e-menus
E) direct selling
Q:
What is hypercompetition? Briefly discuss conditions under which hypercompetition takes place.
Q:
According to Porter, the nature of the interaction between potential industry entrants, buyers, substitute products, suppliers, and rival firms determines:
A) whether or not the government will launch an antitrust investigation.
B) the industry's profit potential in terms of long-run return on invested capital.
C) whether a country can generate a balance of payments surplus.
D) whether a country can create a comparative advantage in the production of differentiated products.
E) whether a country can generate income by innovation.
Q:
V&E Bridal Design Shop caters to engaged couples who desire a traditional Eastern Asian wedding ceremony. The brides-to-be who shop at this store are typically Japanese, Laotian, Vietnamese, Korean, or Chinese. This retailer has used ________ to identify a market segment.
A) psychographics
B) geography
C) demographics
D) socioeconomics
E) its merchandise mix
Q:
Volkswagen strategy to become the world's number one automaker by 2018 included all of the following except:
A) build a U.S. plant, in Westmoreland, Pennsylvania.
B) assemble cars at the plant in Chattanooga, Tennessee.
C) increase production of Passat sedans in the United States.
D) overtake Toyota to become the number one automaker.
E) overtake GM to become the number one automaker.
Q:
A firm that has the skills to be a "first mover" and arrive first in the market has achieved a know-how advantage.
Q:
Which of the following refers to store personnel tailoring the level of service they give based on a customer's perceived ability to pay?
A) sweethearting
B) experiential shopping
C) retail borrowing
D) off-price retailing
E) customer profiling
Q:
The Swatch Group is the world's second largest watchmaker. This shows that in the low-cost segment, brands compete on price and value.
Q:
A firm that has the skills to be a "first mover" and arrive first in the market has achieved a know-how advantage.
Q:
A cashier who purposely undercharges a customer or allows a friend to walk away without paying for items would most likely be accused of which of the following?
A) sweethearting
B) experiential shopping
C) retail borrowing
D) off-price retailing
E) customer profiling
Q:
According to D'Aveni, in today's business environment, short product life cycles, short product design cycles, new technologies, and globalization undermine market stability; thereby an acceleration of competitive forces takes place.
Q:
The Swatch Group is the world's second largest watchmaker. This shows that in the low-cost segment, brands compete on price and value.
Q:
For the retailer, the practice of ________ results in lower total sales and, in many cases, damaged merchandise.
A) sweethearting
B) experiential shopping
C) retail borrowing
D) off-price retailing
E) network marketing
Q:
"Hypercompetition" is a term that describes a business environment of escalating rivalry characterized by rapid product innovation and short product life cycles.
Q:
According to D'Aveni, in today's business environment, short product life cycles, short product design cycles, new technologies, and globalization undermine market stability; thereby an acceleration of competitive forces takes place.
Q:
Shoplifting, sweethearting, and retail borrowing are all problems that contribute to ________.
A) off-price retailing
B) shrinkage
C) pyramid schemes
D) understored trade areas
E) pop-up retailing
Q:
"Hypercompetition" refers to companies that are successful and find sustainable competitive advantages.
Q:
"Hypercompetition" is a term that describes a business environment of escalating rivalry characterized by rapid product innovation and short product life cycles.
Q:
A marketing strategy that enhances the shopping experience for experiential shoppers is called ________.
A) sweethearting
B) retail borrowing
C) party planning
D) nonstore retailing
E) retailtainment
Q:
Research by Morgan Stanley indicates that the United States is home to more companies with global competitive advantage than any other country.
Q:
"Hypercompetition" refers to companies that are successful and find sustainable competitive advantages.
Q:
Which of the following is NOT a function of a point-of-sale (POS) system?
A) collecting sales data
B) connecting directly into a store's inventory-control system
C) evaluating bids from potential suppliers
D) collecting data on returns and transfers to other stores
E) automatically sending orders to suppliers
Q:
The visionary strategy of the Chief Executive Officer of Volkswagen which included switching the German plants entirely to the new model, failed due to all of the following reasons except:
A) resistance on the part of German unions.
B) confusion among American dealers about where it was made.
C) investment of billions of dollars in Skoda autoworks in Czechoslovakia.
D) investment in SEAT in Spain.
E) continued demand for Beetle model in the United States.
Q:
Research by Morgan Stanley indicates that the United States is home to more companies with global competitive advantage than any other country.
Q:
Which of the following is most closely associated with upscaling in retailing?
A) fewer members in the channel of distribution
B) more members in the channel of distribution
C) greater operating costs
D) lower operating costs
E) lower levels of customer service
Q:
According to the hypercompetition model of competitive advantage, which of the following allows the firm to create an entirely new product or market?
A) know-how advantage
B) timing advantage
C) outflanking
D) switching costs
E) countermoves
Q:
It is the number of domestic rivals, intensity of the completion as well as the quality of the competitors that make the difference.
Q:
Which of the following best explains why new retailers often squeeze out older retailers?
A) retail borrowing
B) the wheel-of-retailing hypothesis
C) shrinkage
D) pop-up retailing
E) pyramid schemes
Q:
Which of the following is not one of the four arenas in which dynamic strategic interactions are played out in hypercompetitive industries?
A) cost/quality
B) timing and know-how
C) entry barriers
D) deep pockets
E) buyer and supplier power
Q:
The strong rivalry in the U.S. market between Dell, Gateway, Hewlett-Packard, Apple, and other computer companies has helped make the United States a world leader in personal computers.
Q:
According to the ________ hypothesis, new retailing forms often begin as low-margin, low-price, low-status operations to challenge established retailers; then become successful; and eventually take the place of the established retailers they had challenged.
A) agent
B) broker
C) wheel-of-retailing
D) warehousing
E) retail life cycle
Q:
The country with the highest number of companies with Global Competitive Advantage is:
A) the United Kingdom.
B) the United States.
C) Japan.
D) France.
E) Germany.
Q:
Which one of the following statements about retailers and retailing activities is true?
A) Retailers create form utility.
B) Most retailers are multi-million dollar operations.
C) Retailers are members of channels of distribution.
D) About half of all U.S. workers are employed by retailers.
E) Retailers sell only to businesses.
Q:
According to strategy expert Richard D'Aveni, the actions taken by Swatch in the global watch industry illustrate hypercompetitive dynamic maneuvering in which arena?
A) cost/quality
B) timing and know-how
C) entry barriers
D) deep pockets
E) Olympics
Q:
"Factor conditions" refers to a country's endowment with resources which may have been created or inherited.
Q:
Which of the following is the final stop in the distribution channel in which organizations sell goods and services to consumers for their personal use?
A) franchising
B) retailing
C) brokering
D) wholesaling
E) disintermediation
Q:
In the global watch industry, the success of the Swatch brand resulted in a manufacturing renaissance for Switzerland. In the strategic framework known as hypercompetition, Swatch's success is an example of interactions in which arena?
A) cost/quality
B) timing and know how
C) entry barriers
D) deep pockets
E) sporting events
Q:
Intel's loose brick was its narrow focus on complex microprocessors for PCs.
Q:
Explain how the gap between service quality standards and customer expectations can occur. How can it be avoided?
Q:
The characteristics of home demand for a firm's products or services include all of the following except:
A) the composition of home demand.
B) the size of the home demand.
C) pattern of the growth of the home demand.
D) means by which the home demand pushes or pulls foreign markets.
E) the size of the competitors share of the home demand.
Q:
Intel's focus on designing complex, expensive microprocessors for PCs enabled competitors to develop cheaper chip sets for non-PC electronics devices. In the strategic intent model of competitive advantage, this is an example of "loose bricks."
Q:
How might measuring service quality be more difficult than measuring product quality?
Q:
The ________ framework was developed by Professor Richard D'Aveni to describe a business environment in which no form of competitive advantage can be sustained for long because of escalating and accelerating competitive forces.
A) five forces model
B) generic strategies
C) strategic intent
D) hypercompetition
E) factor conditions
Q:
The "layers of advantage" approach to global competitive innovation is based on using know-how developed by other companies.
Q:
As a service provider, why might you perceive the buyer-seller interaction in the service encounter to be especially critical?
Q:
Chance events play a role in shaping the competitive environment. Chance events are occurrences which include all of the following except:
A) major technological breakthroughs.
B) wars and their aftermath.
C) oil crisis.
D) currency fluctuations.
E) annual business meeting.
Q:
In the case of Volkswagen, dealers are its key consumers while individual car buyers are its key consumers.
Q:
Explain how customers are an important element of the service encounter.
Q:
The rivalry between Dell, Hewlett-Packard, Gateway, Compaq, and Apple forces all the players to undertake all of the following except:
A) develop new products.
B) improve existing products.
C) lower costs and prices.
D) develop new technologies.
E) change the rules of engagement.
Q:
Rugman and D'Cruz cite Benetton as an example of a flagship firm that excels at building partnerships.
Q:
A business buys candy and gum from many different manufacturers and then resells the items to a variety of different stores. The business is an example of a(n) ________.
A) independent intermediary
B) manufacturer-owned intermediary
C) disintermediator
D) reverse marketer
E) brokerage company
Q:
In the 1950s, Sony licensed the technology for the transistor from Bell Labs and proceeded to become the world's leading manufacturer of portable radios. Which strategy was Sony using to gain competitive advantage?
A) collaboration
B) layers of advantage
C) changing the rules
D) loose bricks
E) engagement
Q:
Michael Porter's five forces model and Rugman and D'Cruz's flagship model are both based on the concept of corporate individualism.
Q:
Tony Pool Chemical Co. purchased 144 buckets of chlorine tablets over the Internet from Chemical, Inc., which then placed the order with the manufacturer and arranged for its transportation by truck to the Tony Pool store. Chemical, Inc. is an example of which of the following?
A) a piggyback marketer
B) a reverse flow marketer
C) a disintermediator
D) a hybrid marketer
E) a wholesaling intermediary
Q:
Maytag has been called "the Rolls-Royce of washers and dryers," and it can be said that it has achieved a competitive advantage by means of differentiation.
Q:
The Rugman and D'Cruz's flagship model is evident in the strategies of all but one of the following businesses:
A) Ford.
B) Volkswagen.
C) IKEA.
D) Benetton.
E) Microsoft.
Q:
Which of the following is NOT a channel intermediary?
A) the supplier of the raw materials used to make glass windows
B) the distributor who sells stained glass windows
C) the wholesaler who buys the stained glass window from its creator
D) the showroom that displays glass windows for customers to see
E) the manufacturers' agent who sells the stained glass windows
Q:
The development of the MP3 file format for music was accompanied by the increased popularity of peer-to-peer (p-to-p) file swapping among music fans.
Q:
Which of the following is not an element of Rugman and D'Cruz's flagship model?
A) key suppliers
B) key customers
C) key consumers
D) selected competitors
E) focused differentiation
Q:
Nita can visit her local supermarket and buy a dozen roses, a gallon of milk, two birthday cards, a bag of cat litter, and a pan for roasting a turkey. This illustrates how channels of distribution benefit consumers by ________.
A) creating atmospherics
B) creating assortments
C) directing logistics
D) managing knowledge
E) managing relationships
Q:
Michael Porter's generic strategy framework is derived from the basic types of competitive advantage and the scope of the target market served.
Q:
Mitsubishi Heavy Industries Ltd. and other Japanese companies manufacture airplanes under license to U.S. firms, and also work as subcontractors for aircraft parts and systems. This type of effort is known as:
A) searching for loose bricks.
B) collaborating.
C) building of layers of advantage.
D) changing the rules of engagement.
E) innovating.
Q:
Burt can visit his local hardware store and buy one 4-inch paint brush and not the case of 24 brushes that the retailer had to buy. This is an example of how the channel of distribution facilitates ________.
A) assortment creation
B) risk taking
C) breaking bulk
D) relationship management
E) logistics
Q:
How do chance events play a role in shaping the competitive environment?
Q:
Michael Porter's four generic strategies for achieving competitive advantage are product differentiation, price leadership, promotion power, and distribution efficiency.
Q:
Proud Pets, a producer of clothing and accessories for pets, has recently partnered with a regional chain of pet stores. Which of the following would Proud Pets be LEAST likely to expect from its new channel member?
A) promoting its products through advertising
B) assembling and packaging its products for final sale
C) distributing relevant market information
D) identifying raw materials and other productive inputs
E) taking a risk that items may not sell
Q:
Rivalry among firms refers to all the actions taken by firms in the industry to improve their positions and gain advantage over each other.
Q:
The nature of firm strategy, structure, and rivalry is the final determinant of a nation's diamond. What does this statement refer to? How does domestic rivalry differ from foreign rivalry? Please explain in detail.
Q:
Steve's Physco Skates sells its products to Walmart, who then sells them to the consumer. This is an example of a(n) ________.
A) direct marketing channel
B) producer channel
C) indirect marketing channel
D) horizontal marketing system
E) corporate vertical marketing system
Q:
Microsoft and Intel are two companies that illustrate the concept of "bargaining power of suppliers" in Porter's five forces model of industry competition.
Q:
A husband and wife have a small store that is located at a beach resort. The only products sold at this store are hand-dipped and sculptured candles made by this couple. Marketers would classify the channel of distribution for these candles as ________.
A) indirect
B) direct
C) logistic
D) reverse
E) inbound